Thursday, March 10, 2016

The Port of Vancouver USA is celebrating another record-breaking year. On March 9, the port revealed that 2015 was the best year ever for both revenue and tonnage in the port’s 104-year history.

The port reported a record $38.2 million in operating revenue in 2015, up from the previous record of $37.5 million in 2014. Tonnage – total import and export cargo – was at 6.95 million metric tons, a nearly 5.5 percent increase from 2014.

“Our docks are busy, our industrial facilities are full and we’re making great strides on critical projects like Centennial Industrial Park and the waterfront redevelopment,” port CEO Todd Coleman said.

Overall exports moving through the Port of Vancouver were up 3.8 percent in 2015, according to data. Grain – wheat, corn and soybeans – continued as the port’s largest export by volume. Grain overall increased by 6.4 percent to 4.56 million metric tons in 2015. While wheat exports saw a slight decrease due to fluctuations in currency and the global economy, corn exports increased by 19.5 percent and soybean exports grew by a whopping 58.6 percent.

Overall imports increased by 12 percent last year, according to port data, with much of the increase attributed to gains in steel and project cargo, which require the Port of Vancouver’s unique equipment capabilities and laydown space.

Steel slabs, a new commodity for the port in 2014, brought total steel import tonnage to 770,627 metric tons last year – an increase of 30.5 percent from 2014. Project cargo, such as massive transformers handled at the port for a Bonneville Power Administration energy project, saw a 103 percent increase.

Japanese automaker Subaru of America, a longtime port tenant that signed a 15-year lease extension with the port in 2015, saw its imports grow to 90,183 vehicles in 2015 – a 10 percent increase over 2014 – a record-breaking number.

The arrival of the biggest ship to visit North America catapulted the Port of Long Beach to its highest cargo volume for the month of February, plus extended cargo growth for an eighth consecutive month, according to data released March 9.

Long Beach says it saw strong gains last month by moving 561,412 TEUs, a 35.9 percent increase over the same month last year.

For February, imports were up 44.7 percent to 295,870 TEUs. Exports increased 11.1 percent to 123,010 TEUs, while empty containers – those that are shipped back overseas to be refilled with goods for import – rose 45.5 percent to 142,532 TEUs.

More than one million TEUs have moved through the Port of Long Beach in the first two months of 2016, according to data.
“In February, we showed the world we can handle today’s megaships by inaugurating the 18,000-TEU CMA CGM Benjamin Franklin,” POLB CEO Jon Slangerup said. “The future of big ships is here and our customers are choosing Long Beach.“

The gains in February are also explained by several other factors, including the strength of the US dollar, which continues to drive demand for imports, but also slows exports by making them relatively expensive overseas.
Additionally, the Lunar New Year holiday began Feb. 8, closing many Chinese businesses for a week or more, so US importers ordered extra products ahead of the lull that came to the port in early March.

For the fiscal year to date, Long Beach has moved 2.9 million TEUs so far, a 14 percent jump from the 2.5 million TEUs that the port saw during the same five month period in FY 2015.

The latest monthly Port of Long Beach cargo numbers and more details are available at www.polb.com/stats.

The Port of Seattle is selling a 12-mile stretch of the Eastside Rail Corridor between Woodinville and Snohomish to Snohomish County for $3.5 million. The two sides’ governing bodies agreed to the sale earlier this week.

Under the county’s plans, freight operations are expected to continue on the former BNSF Railway line.

On March 8, Snohomish County Executive Dave Somers and Port of Seattle Commission President John Creighton applauded the newly formed agreement, which is expected to protect 42 miles of rail corridor.

“The Port of Seattle is pleased that we could bring the 42-mile long rail corridor under public ownership and preserve it for generations to come,” Seattle Port Commission President John Creighton said. “We are thankful that we were able to partner with local governments up and down the corridor in preserving a valuable resource for the benefit of everyone in the region.”

The county initially agreed to the transaction back in 2013, but put the purchase on hold in April 2015 due to concerns over the condition of the property, as well as right-of-way issues. The port estimates the line will require up to $10 million in maintenance and improvements over the next decade.

“We are very pleased that the Snohomish County Council and the Port of Seattle Commission have approved the acquisition of the eastside rail corridor,” Somers said. “We will keep this corridor under public ownership and are committed to preserving this rail with trail asset.”

BNSF Railway said March 3 that its 2016 capital expenditure program in California will be about $180 million, and is primarily focused on maintenance projects.

The largest component of this year’s capital plan in the state will be for replacing and upgrading rail, rail ties and ballast, which are the main components for the tracks on which BNSF trains operate.

BNSF’s California maintenance program includes about 1,100 miles of track surfacing and/or undercutting work, the replacement of about 35 miles of rail and more than 70,000 ties, as well as signal upgrades for federally mandated positive train control.

This year’s program follows more than $600 million invested by BNSF in its network in California over the past three years.

There are five intermodal railyards at the Port of Los Angeles, and the company also has a facility at the adjoining Port of Long Beach.

“California plays an important part in the success of our overall network and the broader economy,” BNSF’s California Division General Operations Manager, Mark Kirschinger, said. “At BNSF we will always remain focused on operating a safe and reliable network while helping connect products made in California and imported from across the world with key consumer markets.”

Other capital projects in California this year include beginning a several-year project at the Stockton Intermodal Facility to build more track for loading and unloading containers and creating more parking.

The 2016 planned capital investments in the state are part of BNSF’s $4.3 billion network-wide capital expenditure program that was announced last month. The investments include $220 million in Washington state for replacing and upgrading rail, rail ties and ballast, the main components for the tracks on which BNSF trains operate.

The 2016 Puget Sound Maritime Achievement Award Selection Committee is accepting nominations for this year’s award to be announced at the Seattle Propeller Club’s May Maritime Festival breakfast.

Nominations must be received by April 14, 2016 and may be e-mailed to rberkowitz@trans-inst.org. Nominations should include specific achievements of the candidate, particularly those impacting the Puget Sound maritime community, and a brief biography of the nominee. Industry segments represented by past recipients include steamship lines and agents, shipyards, tug and barge operators, marine architects, passenger and fishing vessel operators, port authorities, stevedores, and organized labor. Several paragraphs about the nominee are sufficient.

Feel free to contact Rich Berkowitz at (206) 443-1738 with any questions about the award nomination.

Tuesday, March 8, 2016

The 2016 Puget Sound Maritime Achievement Award Selection Committee is accepting nominations for this year’s award to be announced at the Seattle Propeller Club’s May Maritime Festival breakfast.

Nominations must be received by April 14, 2016 and may be e-mailed to rberkowitz@trans-inst.org. Nominations should include specific achievements of the candidate, particularly those impacting the Puget Sound maritime community, and a brief biography of the nominee. Industry segments represented by past recipients include steamship lines and agents, shipyards, tug and barge operators, marine architects, passenger and fishing vessel operators, port authorities, stevedores, and organized labor. Several paragraphs about the nominee are sufficient.

Feel free to contact Rich Berkowitz at (206) 443-1738 with any questions about the award nomination.

For the third consecutive year, the Port of Los Angeles is making up to $1 million in non-taxpayer funded community grants to support initiatives, programs, and events benefiting Los Angeles Harbor communities.

During its first two years, the Community Investment Grant Program, which combines port community grant-making into one program, funded 85 programs, projects and events.

Grant awards will focus on initiatives that:

Promote the Port of Los Angeles and the maritime and LA Waterfront related jobs the port generates;

Provide education, training and/or workforce development in the areas of shipping, fisheries, international trade and maritime industry.

Address impacts of the Port of Los Angeles and maritime operations on surrounding communities, including health, aesthetic and environmental impacts.

Promote and implement sustainable practices for preservation and conservation of natural resources in the port environment, from air and water quality initiatives, to renewable energy, wildlife and biological resources at the port.

Funding will be made available in three categories: small grants of $5,000 or less; medium grants between $5,001 and $99,999; and large grants of $100,000 or more.

Organizations must be nonprofit with 501(c)(3) tax-exempt status to apply for port grants, and funds must be spent within the fiscal year granted (July 1, 2016 – June 30, 2017).

A committee comprised of port, city and community representatives will review and approve all grant applications.

To help local organizations prepare grant applications, the port is hosting Community Investment Grant Program workshops, with the first scheduled for Wed., March 30, at 6 p.m. at the Port of Los Angeles Administration Building Boardroom, 425 S. Palos Verdes Street in San Pedro.

The second workshop is scheduled for 6 p.m. Thurs., March 31 at Banning’s Landing Community Center, 100 E. Water St. in Wilmington.

The California Air Resources Board said March 3 that it has fined the China Navigation Co. $129,500 for failing to switch its engines over from heavy diesel “bunker” fuel to cleaner, low-sulfur fuel when close to the California coast, as required by state law.

The case originated in December 2012, CARB says, when one of its inspectors found that the vessel Chenan, managed by the China Navigation Co., operated within regulated California waters – i.e. 24 miles or less from the coast – on noncompliant heavy fuel oil on 12 separate days (four voyages) between Aug. 5 and Dec. 28, 2012, while en route to and departing from the Port of Los Angeles.

China Navigation, according to CARB, took “prompt action” after being notified of the violations and cooperated with the investigation. In addition to paying a fine, the company agreed to comply with all fuel switchover requirements and to keep accurate records going forward.

“Ships using heavy diesel fuels are a significant contributor to California’s air quality problems, even in communities located far from our coast,” CARB Enforcement Division Chief Todd Sax said. “That’s why we check vessels nearly every day to ensure that they are compliant with our strict clean air laws. When we identify a violation, we educate the fleet owner and crew on how to comply with our requirements, and we assess penalties as a deterrent to future noncompliance.”

The Air Resources Board says it conducts 800 to 1,000 ship inspections each year, checking for proper fuel usage, record-keeping and other compliance requirements. Part of the inspection involves sampling each vessel’s fuel, and analyzing the fuel sample for compliance with fuel sulfur requirements.

The Port of Hueneme’s Board of Harbor Commissioners has unanimously approved the signing of an agreement with the US Army Corps of Engineers to deepen the port’s general navigation areas from 35 feet to 40 feet.

Deepening the general navigation areas of the port is expected to improve efficiency and allow ocean carriers to more fully utilize the cargo capacity of their vessels.

“Bringing the port to 40 feet marks a significant game changer for the port,” CEO and Port Director Kristin Decas said.

Under the agreement, the port is to contribute 35 percent of the cost for the $8 million project, while the Army Corps funds the balance.

The board’s approval, which came in late February, starts the process of finalizing the design, engineering and environmental reviews, providing the building blocks that would lead to the construction phase of the deepening project later this year.

The deepening and associated wharf enforcement projects are estimated to create hundreds of new jobs and attract larger vessels with increased capacities that are estimated to result in more than 200,000 tons annually in more cargo.

“Moving forward with the deepening project will enhance the Port of Hueneme’s competitiveness, help to bring in new business, and ultimately boost Ventura County’s economy and create jobs in our region,” Congresswoman Julia Brownley (D-CA) said in a prepared statement. “I am so pleased to support this critical infrastructure project, and look forward to continuing to work with Kristin Decas and the Port of Hueneme commissioners.”

On March 3, the CMA CGM Group revealed that starting at the end of May, it would deploy its flagship fleet of six 18,000-TEU vessels between Asia and the US West Coast. The move follows several successful trial runs at seaports in California and Washington State.

“The six 18,000-TEU vessels named after the Great Explorers will be deployed on the trans-Pacific market, the most dynamic one, to accelerate its growth,” the company said in a statement. “This decision is in line with both the growth strategy set by the Group in the United States and around the world.”

Last December, the CMA CGM Benjamin Franklin became the largest ship ever to call in the United States. It was inaugurated Feb. 19 at the Port of Long Beach, in ceremony that included the presence of CMA CGM Chairman and Chief Executive Officer Jacques Saadé, as well as about 450 customers, local politicians and various stakeholders.

The Benjamin Franklin, which is 1,310 feet long and 177 feet wide, also has called at the port of Seattle and Oakland in recent weeks.

18,000 TEUs is more than double the cargo of most container ships calling at terminals at West Coast ports. If laid end-to-end, 18,000 containers would stretch about 68 miles.

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EDITORIAL

Pacific Maritime Magazine California Contributing Editor Karen Robes Meeks spent several years covering the ports of Los Angeles and Long Beach, California for the Long Beach Press-Telegram and our sister publication Fishermen’s News.